This could be a huge coup for Netflix, and a blow to Blockbuster's fledgeling home service...

QUOTE (IMDb)

Netflix And TiVo in Partnership

Subscribers to the Netflix DVD rental service will soon be able to download movies onto TiVo personal digital recorders instead of receiving them by mail, Newsweek reports in its current issue. Details of how the service will function were sketchy. Newsweek suggested that it will likely employ software developed by a recently acquired company, Strangeberry, that allows a DSL or cable modem to be plugged into a TiVo recorder to receive content from the Internet. Reporting on the development, Newsweek commented that it "could shake up the media world." Both Netflix and TiVo declined to comment on the report.

Spokespersons for Netflix and TiVo dismissed a Newsweek report Tuesday that the two companies were planning a joint venture that would essentially allow Netflix subscribers to download movies onto their TiVo recorders rather than receive them through the mail. Bloomberg News quoted a TiVo spokeswoman as saying that such a service would not be offered for at least a year. Nevertheless shares in both companies soared on the magazine's report, Netflix rising 7.3 percent to $15.41; TiVo, nearly 15 percent to $5.08.

I'm a week into my free blockbuster trial, and I'm about ready to quit. I tried to rent Clerks (which I've already seen), and I was mistakenly sent the animated series, rather than the film. I reported the problem and requested a replacement. I received the replacement today, only to open the envelope and find they made the same mistake again!

This weeks new releases are still listed as "coming soon." Netflix always shipped new releases the day before they came out. Service has been slower than Netflix, as they only have one distribution center. The lower price and in-store rentals may be tempting, but you're better off with Neflix. I will gladly pay the few extra dollars a month for Netflix's service.

In confirming a long-circulating rumor, TiVo and Netflix said Thursday that they will develop technologies for the digital delivery of movies for viewing on consumers' television sets and will jointly work on securing content deals with studios. The movies-on-demand initiative has no name or price yet -- executives won't even say whether it will operate via a subscription model or a la carte service -- though it will be available next year. In a pre-emptive move to squelch concerns of conflicts of interest, TiVo CEO Mike Ramsay has resigned from the Netflix board of directors, a position he has held for several years. In fact, Netflix CEO Reed Hastings said, it was the resignation that prompted the firms to announce their partnership several months before a product will be ready. "If we don't put it in context, people might come to the wrong conclusion," Hastings said. Hastings said the companies had discussed a partnership for three years but began a joint-development project a year ago. (Paul Bond)

The backend is by an outfit called Mentura, which is private labelling its services for many different outlets (christian and non-Christian): CBD, Family Christian, CT, homeschool.com, and others. They are aggressively licensing new titles (we're dealing with them on some titles).

NetFlix has lists? Or just their lame 'recommendations' ? I'd love it if either had lists like GreenCine does (or Amazon, for that matter). Speaking of Amazon, I'm surprised they haven't thrown their hat into this ring.

Amazon is joining the mail rental service, starting in the UK. Story here.

NOV. 11 | In the face of sharp declines in its core over-the-counter rental business, Blockbuster Video has taken steps toward the possible $1 billion purchase of No. 2 video rentailer Hollywood Video, which would give Blockbuster control of well over 50% of the $8 billion-plus video rental market.

If a deal were to happen, it would create a giant chain of nearly 7,000 stores in the U.S. Blockbuster represents 40% to 45% of the video rental market, with Hollywood a distant second at 8% to 10%.

...

"I'm not sure what they'd be buying," McAlpine Associates principal Dennis McAlpine said. "The video rental business is pretty much a store-by-store business. Whether you have 5,000 stores or 6,000 stores, you don't get a lot of economies of scale in terms of operations."

McAlpine also noted that about 25% of Hollywood's 1,900 stores are located adjacent to Blockbuster locations, which could complicate any integration plans.

"I don't know what you would do with those stores," he said. "I think we can assume their landlords aren't going to let them out of those leases. So, do you convert them to Blockbuster locations and then have a Blockbuster next to another Blockbuster? Or do you continue to operate under two brand names?"

Operating under two distinct brand names, however, could allow Blockbuster to expand the number of titles it offers by shifting Hollywood's inventory mix away from its current emphasis on new releases, particularly in those stores located next to Blockbuster outlets.

An expanded retail inventory also would benefit Blockbuster's recently launched online subscription service once it's fully integrated with the store-based inventory.

In a third-quarter earnings conference call, Antioco noted that about 40% of online orders are for titles not typically stocked in Blockbuster or Hollywood stores.

The Hollywood stores also would give Blockbuster another 1,900 distribution points for its online service.

Neat site. It also explains Netflix's new "Profiles" feature, which allows one account to allocate however many DVDs (3-8, depending on your account) to different users in your household.

You can also limit certain users to disks with certain ratings, and it allows you and your spouse to manage your ratings more efficiently, ideally cutting down on those weird recommendations one sometimes gets. You know what I'm talking about.